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Pros and Cons of Third Party Online Affiliate Networks


Online affiliate marketing has taken the internet by storm and has proven to be a highly effective way of maximizing website revenue. Why limit yourself to selling your own products when you can profit by selling somebody else's too?

There are thousands of individual affiliate programs offered on the internet, many being through third party affiliate program networks such as OffersQuest, Commission Junction and Linkshare. These companies connect a large number of advertisers and publishers together via their own network. Advertisers sign up through their network to have publishers promote their products and publishers sign up to access a large network of advertisers all at one location. In the process, the affiliate network makes a profit via advertiser set-up fees, monthly account maintenance fees, commissions, etc.

The question is, as a publisher, is it worth using these large affiliate networks or is it better to form direct partnerships with advertisers?

The Good
The primary selling point of third party affiliate networks is convenience. As a publisher, one registration gives you access to tens, even hundreds of advertisers simultaneously. Tracking partner performance is easy, there is only one technical support contact, things are easier and simpler to manage, and best yet, payment is received as one convenient monthly lump sum.

The Bad
Because as a publisher you're utilizing a service, advertisers who also offer a direct affiliate partnership will typically offer a lower commission for publishers who choose to partner with them through a third party network. This is because it costs advertisers money to use the services of a third party. Also, without naming names, some affiliate networks have been known for not tracking sales and leads properly as honestly as they could be (which means money from your pocket). Payment thresholds can often be fairly high - a $50 US minimum is common for international publishers. Finally, a payment delay of two months or more from the date of a sale/lead generation can occur, as the third-party affiliate network waits until the advertiser pays them, before they pay you (the publisher).

Conclusion
In many (if not most cases), having both options of partnering directly with an advertiser or through an affiliate network is not a choice - it's usually one or the other. If an advertiser you like only offers their affiliate program through a third party, you're limited to the advertiser network they've partnered with, or not partnering at all. Affiliate networks are not bad programs to use, just keep in mind the issues outlined above, and you'll be making money in no time!

Veronica Dubak is the owner of the successful SurveyBounty.com, http://www.surveybounty.com free online paid surveys directory. With a comprehensive listing of market research companies classified by region, and background information on the online survey industry, SurveyBounty.com is the legitimate source for online survey information.


Todays News by officejax surplus outletMORE AFFILIATE REVENUE RESOURCES updated Thu. February / 09 / 2012

Disney's Earnings Beat; CEO Bob Iger Talks Piracy, Parks - CNBC.com

Disney's Earnings Beat; CEO Bob Iger Talks Piracy, Parks
CNBC.com
Increased guest spending and attendance at the parks, and higher advertising rates and affiliate revenue at the media networks drove the earnings upside. The revenue fell short of analyst expectations (Disney doesn't provide guidance) – at $10.779 ...

and more »

Disney derring-do - New York Post

Globe and Mail

Disney derring-do
New York Post
Affiliate revenue will kick up due to Comcast and other deals that will be negotiated,” Disney CEO Bob Iger said yesterday on a conference call with analysts to discuss first-quarter results. Iger noted the Mouse House doesn't yet have deals with ...
The Walt Disney Company Reports First Quarter EarningsMarketWatch (press release)
Disney Posts 7% Broadcast Revenue DropTV News Check
Walt Disney's CEO Discusses Q1 2012 Results - Earnings Call TranscriptSeeking Alpha
Reuters -Travel Agent
all 338 news articles »

News Corp. Earnings Jump in Second Quarter - Broadcasting & Cable

Telegraph.co.uk

News Corp. Earnings Jump in Second Quarter
Broadcasting & Cable
Affiliate revenue rose 9% at the domestic cable channels. Operating income for the television unit, which includes Fox Broadcasting, rose 25% to $189 million from $151 million. The company said the growth was the result of increased broadcast network ...
News Corporation Reports Second Quarter Net Income of $1.06 BillionMarketWatch (press release)
Headwinds Fail to Deter News Corp.Zacks.com

all 35 news articles »

Pinterest Is Making Money In A Slightly Shady Way - The Frisky

The Frisky

Pinterest Is Making Money In A Slightly Shady Way
The Frisky
It's also a boon for a company like Skimlinks, which takes 25% of all affiliate revenue. So what's the problem here? Well, Pinterest hasn't been disclosing to users when and how it is making money from their posts. If I pin a link to a cute pair of ...
Skimlinks is the real story behind Pinterest's successeu.techcrunch

all 70 news articles »

AMD, Nike, Disney, Panera Bread Among Stocks Driving Big News Feb. 7th - Wall St. Cheat Sheet

AMD, Nike, Disney, Panera Bread Among Stocks Driving Big News Feb. 7th
Wall St. Cheat Sheet
The increase at ESPN was driven by higher affiliate revenue reflecting contractual rate increases and a reduction in revenue deferrals related to annual program commitments. During the quarter, ESPN deferred $190M of revenue compared to $266M in the ...

and more »

Fox Studio, TV Divisions Boost News Corp. Q2 Profits Despite Hacking Investigation - Reuters

Fox Studio, TV Divisions Boost News Corp. Q2 Profits Despite Hacking Investigation
Reuters
A little bit of everything contributed to the higher figures, from a nine percent growth in affiliate revenue to a six percent increase in advertising revenue. FX in particular continued to stand out as a top performer, while the NBA lockout both ...

and more »

Fox on Top - Multichannel News

Fox on Top
Multichannel News
SNL Kagan calculates FNC's affiliate revenue at $985.3 million in 2012, based on 82 cents per sub each month. “The network is getting strong monthly subscriber fee increases, up from 58 cents in 2009,” according to Baine, who projects average license ...

and more »

It's time for Disney to cut ABC loose - Fortune

Fortune

It's time for Disney to cut ABC loose
Fortune
Disney (DIS) blamed the poor showing at ABC on lower affiliate revenue following the end of Oprah Winfrey's popular talk show and a decrease in political ad spending, as it was not an election year. While both may explain a decrease in revenue, ...

and more »

Cruise line, theme parks propel Disney profit - Orlando Sentinel

Cruise line, theme parks propel Disney profit
Orlando Sentinel
Operating income at Disney's media networks rose 12 percent for the quarter to $1.2 billion, as higher affiliate revenue at ESPN and the Disney Channel cable stations more than offset declines at broadcast station ABC. Operating income at Disney's ...

and more »

Viacom's CEO Discusses Q1 2012 Results - Earnings Call Transcript - Seeking Alpha

Viacom's CEO Discusses Q1 2012 Results - Earnings Call Transcript
Seeking Alpha
We expect our affiliate revenue to grow on an annualized basis in the high-single to low-double digit for the foreseeable future. As we unlock value for our content across platform, we're unlocking growth potential across global markets as well, ...

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